On the company’s earnings call, CFO Mardi Dier said that Madrigal “may dip in and out of profitability in the near term” depending on the timing of investments and seasonal patterns.
- The company further refined the readout timing for its ongoing trial in well-compensated MASH cirrhosis to late 2027.
- CEO Sibold called the opportunity in the treatment of well-compensated MASH cirrhosis potentially large enough to double Rezdiffra’s addressable market.
- Citi raised the firm’s price target on Madrigal Pharmaceuticals to $760 from $725 and kept a ‘Buy’ rating on the shares after “another strong quarter” for Rezdiffra.
Shares of Madrigal Pharmaceuticals (MDGL) declined on Tuesday, hitting a fresh 52-week low, even as the company reported its first quarterly profit, as investors focused on management’s comments that profitability may not prove durable in the near term amid ongoing commercial investments.
MDGL shares were down 6% at the time of writing.
MDGL’s Strong Commercial Performance
Madrigal’s third-quarter net sales rose 50% year over year to $431.3 million, lifting year-to-date sales above $1.1 billion. Diluted earnings per share came in at $1.83, compared to a loss of $4.01 in the corresponding quarter of 2025, against a Wall Street estimate of a loss of $0.87 per share. More than 55,850 patients were on Rezdiffra, the company’s metabolic dysfunction-associated steatohepatitis drug, at quarter-end, nearly double the year-ago figure.
CEO Bill Sibold said the company is “still early in a rapidly growing market,” noting the diagnosed U.S. moderate-to-advanced fibrosis population is on track to expand more than 30% in 2026. Selling, general and administrative expenses rose on commercial expansion for Rezdiffra in the third quarter, including marketing efforts.
The company posted net income of $55.4 million, or $1.83 per diluted share, versus a year-earlier loss in the quarter. Cash stood at $961.8 million, and the firm has been operating cash-flow positive for two quarters.
Profitability And Pipeline Progress
On the earnings call, CFO Mardi Dier said that Madrigal “may dip in and out of profitability in the near term” depending on the timing of investments and seasonal patterns.
Madrigal further refined the readout timing for its ongoing trial in well-compensated MASH cirrhosis to late 2027. It also plans to start a second late-stage event-driven outcomes study in the same indication in the first half of 2027. The new trial is expected to enroll more than 2,000 patients.
Sibold called the opportunity in the treatment of well-compensated MASH cirrhosis potentially large enough to double Rezdiffra’s addressable market and emphasized the goal of being “first and best.”
But Citi Hikes Price Target On MDGL
Citi raised the firm’s price target on Madrigal Pharmaceuticals to $760 from $725 and kept a ‘Buy’ rating on the shares after “another strong quarter” for Rezdiffra. While the timing of the trial in well-compensated MASH cirrhosis readout was refined to late 2027, the analyst continues to see “favorable odds” within the updated timelines.
Citi’s new price target represents a potential upside of 76% from the stock’s closing price on Monday.
How Did MDGL Retail Traders React?
On Stocktwits, retail sentiment around MDGL stock jumped from ‘bearish’ to ‘extremely bullish’ territory over the past 24 hours, while retail chatter rose from ‘high’ to ‘extremely high’ levels.
A Stocktwits user highlighted the company’s revenue growth in Q3, noting that the company “is growing like crazy.”
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A less optimistic user said that the stock will drop further to double digits.
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MDGL stock has dropped 31% year-to-date.
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